Loto-Québec puts revenue, profit dip down to short quarter, hospitality struggles
Crown corporation says it remains on course to hit targets
Loto-Québec reported a dip in both revenue and profit in the first quarter of the Canadian fiscal year, which it attributed to a quarter that was two days shorter than the same period last year, as well as the struggles of the hospitality industry.
Between April 1 and June 24, 2024, the crown corporation posted total revenues of $689.7 million and a consolidated net income of $349.7 million. Those totals are down 3.0% and 8.2%, respectively, from the first quarter of the 2023-24 fiscal year.
However, Loto-Québec said it is “proud” of the results and emphasized that they “fully align with its forecast.” In a release, it put the shortfall down to the fact this quarter had 85 days, while Q1 2023-24 had 87. The statement added that the gap in net income is entirely due to one-time events in the first quarter, including the time discrepancy.
“Our teams’ remarkable commitment and work led to very satisfying results that align with our forecasts,” said President Jean-François Bergeron. “This enables us to continue facing the upcoming months with optimism. The efforts to improve efficiency and the principles of social responsibility remain at the core of our priorities across all sectors.
“Throughout the quarter, our teams put their talent and skills to work to continue enhancing our offering. Several new initiatives and improvements were implemented both online and at gaming locations. Our customers greatly enjoy the wide variety of activities we have for them at casinos and gaming halls.”
Bergeron says hospitality struggles taking toll, confident of growth
The $689.7 million in revenue was split fairly evenly between the casino and gaming sector ($275.0 million), the lottery product sector ($219.1 million) and the gaming establishment sector ($200.7 million). The latter of those, which encompasses video lottery terminals in bars and restaurants, event betting and Kinzo and network bingo, posted the largest revenue decline of the three categories, something Bergeron put down to restaurants struggling.
“Economically we feel the fact the discretionary dollar is tightening,” Bergeron told La Presse. “Gaming establishments are following the curve of restaurants, and we know that restaurants are in a difficult situation.”
The revenue report was Loto-Québec’s first since it posted full-year results in June that showed a slight year-on-year decline but also represented the crown corporation’s second-best year since 2006.
Between April 1, 2023 and March 31, 2024, Loto-Québec took nearly $2.9 billion in revenue and made $1.5 billion in net income. That revenue total included $1.1 billion generated by the province’s casinos and bingo halls, a new all-time record for Québec.
Bergeron put that “excellent” year down to better management of the crown corporation’s expenses, as well as a diversified product offering. However, he acknowledged to La Presse that the crown corporation could do more to compete with the grey market in the province, noting that “here is a market that we are not capturing.”
Loto-Québec is also expecting a boost from a new $150-million hotel being constructed on the Casino de Montréal grounds, which the president says “will cement the casino’s status as one of North America’s top entertainment destinations.”